Westinghouse eyes Australian nuclear potential, links with local suppliers

Angela Macdonald-Smith and Jenny Wiggins

Nuclear technology giant Westinghouse sees the retirement of old coal-fired power plants in Australia as an opportunity for nuclear power and is positioning itself early to inform the political and public debate.

In Sydney to announce a tie-up with three local suppliers, Westinghouse chief executive Danny Roderick said the Japanese-owned company "wants to make sure that the facts are out there" on the safety of new-generation nuclear reactors.

Some of Australia's largest coal fired power plants will need to be replaced within the next 10 years, says Westinghouse. Photo: Bloomberg

He said that convincing the 8 per cent of the Australian public that is undecided about nuclear power would create "an overwhelming majority of people in Australia that would support a nuclear new-build".

The company, part of Toshiba Corporation, already has strong links with uranium suppliers in Australia, and sees the latest step as "a very logical fit" to build on those and explore local manufacturing capacity for a new reactor.

Mark Chilcote, executive general manager of engineering and construction at UGL, one of the three Australian suppliers, said the company initially planned to work with Westinghouse on nuclear projects in Asia.

UGL does not expect to work directly on nuclear reactors, but can draw on its experience designing and monitoring power plants to provide engineering and maintenance services. It will work with Westinghouse to train staff on how to maintain nuclear plants.

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"The amount of nuclear power plants being built in Asia is quite substantial so there is obviously an after sales opportunity in the maintenance of those plants," Mr Chilcote said.

Similar tie-ups were inked with Saab Australia and alloy products manufacturer Teralba Industries.

Public perception still an issue

Nuclear power made "a lot of sense" for Australia, Mr Chilcote added. "Look at what brown coal and the associated emissions are doing on the environment. There's a lot less waste out of nuclear, the hardest part is overcoming the public perception."

The option of nuclear power for Australia is being examined within a South Australian royal commission, with findings due next year. Meanwhile, the federal government's greenhouse gas reduction targets, of 26 to 28 per cent cuts from 2005 levels by 2030, and the anticipated retirement of ageing coal-fired generators have also set the scene for discussion.

"In the next decade you have several very large coal plants that are going to need to be retired, and you're going to have to choose to build something to replace those," Mr Roderick said.

"If you're going to talk about carbon reduction and greenhouse gas reductions you're going to have to bring nuclear into the mix."

In the next decade you have several very large coal plants that are going to need to be retired, and you're going to have to choose to build something to replace those.

Danny Roderick, Westinghouse

Mr Roderick's discussions this week included federal Environment Minister Greg Hunt, Port Adelaide member Mark Butler and senior officials from the offices of the Prime Minister and Cabinet, and Resources Minister Josh Frydenberg.

He has been pointing out that Westinghouse's AP1000 nuclear plant uses "passive" technology that doesn't require electricity to be able to safely shut itself down, averting a Fukushima-like situation. This type of plant is under construction in the US and is set to be used in the UK, China and India.

Mr Roderick said that more than 70 per cent of a new plant could be constructed using Australian commodities and suppliers.